Canon U.S.A. (NYSE:CAJ) said today it made a $40 million dollar equity investment into diagnostic developer T2 Biosystems Inc. (NSDQ:TTOO), giving Canon a 19.9% stake.
Canon said it purchased approximately $40 million of T2’s stock at $6.56 per share through a private placement.
The investment isn’t the 1st pairing for Canon and T2, as both companies have been collaborating to develop a diagnostic test panel for rapidly detecting Lyme disease since February 2015.
“We recognize that both T2 Biosystems and Canon U.S.A. are aligned in working towards the same goal and as such, we are pleased to strengthen our relationship and look forward to bringing future innovative diagnostic products to market that can improve patient health. Investments to companies like T2 is another example of Canon’s commitment in healthcare,” Canon U.S.A. CEO & chair Joe Adachi said in a press release.
Canon U.S.A. exec veep, chief administrative officer and GC Seymore Liebman will join T2 Biosystems’ board of directors as part of the deal, the companies said.
“The strong backing and commitment we have received from Canon will help us continue to strengthen our business and accelerate our efforts to bring new products to market. We look forward to continuing our partnership with Canon,” T2 Biosystems CEO John McDonough said in prepared remarks.
Shares in T2 Biosystems have jumped up 12.2% in mid day trading, at $7.29 as of 1:25 p.m. EDT
